Passive Income Streams, Ideas and Examples – Affiliate Marketing

Passive Income Streams, Ideas and Examples – Affiliate Marketing

Affiliate marketing allows you to sell others peoples products without having to hold any stock yourself. It is a powerful way of starting your passive income empire as you do not need to invest a great deal of money up front to get going. Also, when you have established a presence on the internet you probably do not need to do a great deal to maintain your position and continue to earn money on auto-pilot. There are lots of affiliate schemes out there, but probably the best known is Amazon Affiliates. The Amazon scheme pays you a percentage of the sale price for direct customers to certain products or services.

The Basics

If, for instance, you are interested in gardening and manage a website dedicated to growing tomatoes, you can recommend products to your readers, which if they buy will generate you some income. To create a link you need to sign up for Amazon in territories you intend to sell to. So, if the majority of your visitors are British then focusing on Amazon.co.uk would be the best thing for you.

Passive Income Streams Ideas and Examples - Tomatoes

Amazon will pay between 2% and 10% commission on purchased made following a click from your site. The purchase needs to be made within 72 hours of clicking on your link, however it doesn’t matter if the customer purchases a product you recommend, or something else. What matters is that they have used your link and bought something with 72 hours.

Why Amazon For Affiliate Marketing

Lots of people already have an Amazon account and have good experiences of buying through this channel. If the product you recommend is good and you are helping someone solve a problem, by linking to Amazon products you do not have to overcome the hurdle of customer trust. You see, your visitor will already have established a trust with Amazon and will not find it hard to part with money on their site. This is all good news for your passive income stream.

Also, if your site has a global readership, then you can have multiple links to supply products for different regions.

How to Get Going

Assuming you’ve already created an Amazon Affiliates account, what you need to do is create some content which can be accessed online and input a link you’ve created on the Amazon site into your content. Once you have the link within some useful content, then you need to make sure hundreds, thousands and millions of people read the content and are so convinced by your solution they will click the link and buy the product.

Getting visible on the internet is a dark art and one which entire websites are dedicated to. To get you started I would suggest you have a read of Pro Blogger by Darren Rowse as it provides a wealth of information about making successful content and getting your website seen.

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Passive Income Streams, Ideas and Examples – Introduction

Passive Income Streams, Ideas and Examples – Introduction

Passive Income has become increasingly popular over the last few years. Having a look at Google Trends, you can see the relative popularity has increased steadily over the last ten years. The following graph was captured the day this article was written (May 2016) and shows how popular this Google Search Term has become:

Passive Income Interest Over TIme Google Trends

It seems more people want to be able to make money whilst sipping cocktails on the beach. And whilst this idea is theoretically possible, passive income rarely delivers a luxury lifestyle with no effort whatsoever. Instead, it is best thought of as a top up to compliment your main source of income and to help reduce burdensome mortgages and other life expenses. This is how passive income supplements my income and is used to help accelerate the  rate in which my mortgage is paid off.

Passive Income Fundamentals

The first thing everyone needs to know about passive income is that work is required up front, maintenance is often required and to make a profit, you need to earn more than you spend on creating your passive income stream. This all may sound easy, but you’ll typically find to start off with you spend more than you generate to get things off the ground. And without the right kind of motivation, you may give up and end up losing any start-up investment.

Diverse Passive Income Streams

Passive Income Streams

It is best not to put all of your eggs into one basket. When one stream is performing well, it may be supporting other less established streams, or providing you with the capital to develop new streams and scale your ideas. Diversifying means that you are less likely to lose everything if one stream performs poorly. For instance, if you have a stream of income which depends upon organic Google search traffic and the search algorithm changes, then having a passive income stream dependent upon Facebook might save your bacon. Being as nothing is guaranteed, you can take out your own insurance policies by having diverse passive income streams and keeping them all ticking over.

Others Can Help

You may be put off by the sheer amount of work involved in setting up your income streams. Don’t fret as you can always outsource some or all of the work to others. Before you do this though, you will need to have a clear idea about who you want to do your bidding and how they will go about it. The use of Fiverr and other freelance sites can help you get things done quicker, however you should spend time working out whether the work done by others is going to need lots of additional input from you.

Tim Ferriss in his book the Four Hour Work Week writes a lot about using virtual assistants and making the most of their capabilities. To make these pay you need to have first worked out whether your money making stream is going  to generate enough income to cover all of these costs. And, again you need to be careful when selecting someone who will work under your brand.

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